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Download Africa and the European community after 1992 by World Bank, Economic Development Institute (Washington, PDF

By World Bank, Economic Development Institute (Washington, D.C.)

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Extra info for Africa and the European community after 1992

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Given the Community's healthy overall trade balance, the problem really is one of protection for key industries. Drawing not always convincing sustenance from modern strategic theories of protection (Krugman 1986), the Community insists that Europe's technological position must not be undermined, and that reciprocity must be the key concern in industrial sectors characterized by small numbers of producers and extensive research and development externalities. Clearly, a strategy of increasing Community exports to Japan would be superior to protectionism on economic grounds.

Efforts to liberalize the CCP have involved hard bargaining with the Community as well as between the Community and nonmember states. Thus, the background to Community trade policy is different in many respects from that of other major trading groups. For this reason alone, it constitutes a worthwhile subject of study. The evolving nature of the European Community itself makes such a study even more challenging and worthwhile. In recent years, the Community has undergone farreaching changes, each of which has had, and will continue to have, significant implications for the CCP.

They also stipulate that the EC can enter into regional trade and cooperation agreements as it has with the European Free Trade Association and a number of other regional groups. The paper provides an excellent summary of the Community's trade patterns, including intra-Community trade and extra-Community trade, and emphasizes that Community members trade mostly with each other and with other industrial countries. Only 13 percent of trade is with the developing countries. Tables analyze the composition of imports from and exports to both industrial and developing countries as well as state trading areas.

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